Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 Question 1: Explain in detail

the project delay analysis methodology? Answer: Delay Analysis: Delay analysis is a widely debated construction law subject due to the number of projects that are not completed o n time, the financial implications of late completion and the often quite differ ent conclusions that can result depending upon the method of analysis used. Dela y analysis is the technique used to identify causes of delay and the impact they have on the progress and completion of a project. It is necessary in some form for claims for extensions of time and cost of prolongation. Without it a contrac tor will fail to demonstrate any entitlement. In practice, several iterations ar e required to ensure that the model represents what would have happened but for the delays. This involves adjusting the level of detail, logic and durations of activities. When undertaken properly, this method of analysis addresses the comp lex issues of concurrent delays, acceleration and re-sequencing of activities. I t is often used by expert witnesses when giving opinions in arbitration or litig ation Delay analysis is a forensic investigation into the events or issues that caused a project to run late resulting in Schedule Variances. Delay analysts ref er to `critical' and `non-critical' delays; the first are events causing delay t o the project's completion date and the second type affect progress on the proje ct but do not directly impact the project completion date. During the past decad e developments in computer technology and the availability of more advanced plan ning software packages changed the way in which delay claims and the results of a delay analysis are presented. Delay analysis methodology: There are two types. The first type of delay analysis methodology is prospective; which demonstrates the theoretical or likely impact of the consequences of delaying events rather than showing what in fact occurred. The basis of this methodology is to establis h a programming model of the project, usually the contractor's as planned progra m, then impact the model by the application of delaying events. This type of met hodology is commonly used to demonstrate what extension of time a contractor is due, as a result of the application of employer responsible delaying events. Thi s is said to be the contractor's entitlement. Entitlement in this context is der ived from the results of a delay analysis and is not to be confused with contrac tual entitlement. In summary the prospective type of methodology is a theoretica l calculation of the likely delay a delaying event(s) would cause to project com pletion. In other words, it focuses firstly on the delaying event and then demon strates the likely delay to progress and ultimately project completion that is l ikely to flow from the event. The second type of delay analysis methodology is r etrospective. The retrospective analysis tries to show what actually occurred on a project; where the delays were; and what caused the delay to project completi on. The analysis shows how actual progress differed from what was planned. By fo cusing on how the works actually progressed, the analysis will show when work ac tivities were delayed, and from the results of the analysis, investigation of wh at caused the actual delays can be carried out. In summation, this type of metho dology looks at what actually happened, what activities were actually delayed an d only thereafter what caused the delay. Both types of delay analysis methodolog y are to some degree subjective. The prospective analysis relies heavily on a pr ogramming model of the project and the delay analyst's opinion on how the delay event was likely to influence the model. The retrospective analysis is less Bhupinder Singh Reg. No. 521063004 Page 1 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 subjective as it relies on actual progress. Howe ver, interpretation of the results as to what caused delay is subjective. This i s because the delay analyst will usually have to consider a number of related is sues as to what caused delay and apply his own experience and judgment. If there were a single method of analysis that yielded only one result from a given set of facts then there would be little doubt as to the party responsible for the de lay. Until such a method is found, however, delay analysis will continue to be a subject of much debate. Question 2: Describe all the project management knowledge areas. Answer: The bas ic function of project management is to use skills and knowledge to manage and f ully utilize all the resources in a project. Peter Ducker has said Plans are only good intentions unless they immediately degenerate into hard work. And to accomp lish this tough task is the biggest challenge faced in a project. To face the ch allenge well, it is necessary to make sure you spend maximum time in planning. T o make planning easier, PMI has subdivided project management into 42 processes. And these 42 processes have been bundled into 5 process groups. They are simult aneously distributed among 9 knowledge areas. These process groups/processes may overlap/repeat based on the activities on the project. The 42 processes are als o grouped into various knowledge areas. The nine knowledge areas are: Project In tegration Management: A subset of project management that includes the processes required to ensure that the various elements of the project are properly coordi nated. It consists of: Project plan developmentintegrating and coordinating all p roject plans to create a consistent, coherent document. Project plan executioncar rying out the project plan by performing the activities included therein. Integr ated change controlcoordinating changes across the entire project. Project Scope Management: A subset of project management that includes the processes required to ensure that the project includes all the work required, and only the work req uired, to complete the project successfully. It consists of: Initiationauthorizin g the project or phase. Scope planningdeveloping a written scope statement as the basis for future project decisions. Scope definitionsubdividing the major projec t deliverables into smaller, more manageable components. Scope verificationformal izing acceptance of the project scope. Scope change controlcontrolling changes to project scope. Bhupinder Singh Reg. No. 521063004 Page 2 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 Project Time Management: A subset of project man agement that includes the processes required to ensure timely completion of the project. It consists of: Activity definitionidentifying the specific activities t hat must be performed to produce the various project deliverables. Activity sequ encingidentifying and documenting interactivity dependencies. Activity duration e stimatingestimating the number of work periods that will be needed to complete in dividual activities. Schedule developmentanalyzing activity sequences, activity d urations, and resource requirements to create the project schedule. Schedule con trolcontrolling changes to the project schedule. Project Cost Management: A subse t of project management that includes the processes required to ensure that the project is completed within the approved budget. It consists of: Resource planni ngdetermining what resources (people, equipment, materials) and what quantities o f each should be used to perform project activities. Cost estimatingdeveloping an approximation (estimate) of the costs of the resources needed to complete proje ct activities. Cost budgetingallocating the overall cost estimate to individual w ork activities. Cost controlcontrolling changes to the project budget. Project Qu ality Management: A subset of project management that includes the processes req uired to ensure that the project will satisfy the needs for which it was underta ken. It consists of: Quality planningidentifying which quality standards are rele vant to the project and determining how to satisfy them. Quality assuranceevaluat ing overall project performance on a regular basis to provide confidence that th e project will satisfy the relevant quality standards. Quality controlmonitoring specific project results to determine if they comply with relevant quality stand ards and identifying ways to eliminate causes of unsatisfactory performance. Pro ject Human Resource Management: A subset of project management that includes the processes required to make the most effective use of the people involved with t he project. It consists of: Organizational planningidentifying, documenting, and assigning project roles, responsibilities, and reporting relationships. Staff ac quisitiongetting the needed human resources assigned to and working on the projec t. Team developmentdeveloping individual and group skills to enhance project perf ormance. Project Communications Management: Bhupinder Singh Reg. No. 521063004 Page 3 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 A subset of project management that includes the processes required to ensure timely and appropriate generation, collection, dis semination, storage, and ultimate disposition of project information. Communicat ion takes at least 90% of a Project Manager's time! It consists of: Communications planningdetermining the information and communications needs of the stakeholders : who needs what information, when they will need it, and how it will be given t o them. Information distributionmaking needed information available to project st akeholders in a timely manner. Performance reportingcollecting and disseminating performance information. This includes status reporting, progress measurement, a nd forecasting. Administrative closuregenerating, gathering, and disseminating in formation to formalize phase or project completion. Project Risk Management: Ris k management is the systematic process of identifying, analyzing, and responding to project risks. It includes maximizing the probability and consequences of po sitive events and minimizing the probability and consequences of adverse events to project objectives. It includes: Risk management planningdeciding how to appro ach and plan the risk management activities for a project. Risk identificationdet ermining which risks might affect the project and document their characteristics . Qualitative risk analysisperforming a qualitative analysis of risks and conditi ons to prioritize their effects on project objectives. Quantitative risk analysi smeasuring the probability and consequences of risks and estimating their implica tions for project objectives. Risk response planningdeveloping procedures and tec hniques to enhance opportunities and reduce threats from risks to the project's ob jectives. Risk monitoring and controlmonitoring residual risks, identifying new r isks, executing risk reduction plans, and evaluating their effectiveness through out the project life cycle. Project Procurement Management: A subset of project management that includes the processes required to acquire goods and services to attain project scope from outside the performing organization. It consists of: Procurement planningdetermining what to procure and when. Solicitation planningdoc umenting product requirements and identifying potential sources. Solicitationobta ining quotations, bids, offers, or proposals, as appropriate. Source selectioncho osing from among potential sellers. Contract administrationmanaging the relations hip with the seller. Contract closeoutcompletion and settlement of the contract, including resolution of any open items. Bhupinder Singh Reg. No. 521063004 Page 4 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 Question 3: State and describe process of estima ting resource & duration for the activity. List the basic elements of a project plan. Answer: Activity Resource Estimating Process: Activity resource estimating is a process in which the project team carefully compiles a thorough listing of the resources that will be needed in completing a project. There are six inputs that are to be used in the process of activity resource estimating. Those six i nputs are the activity list, the activity attributes, the organizational process assets, the enterprise environmental factors, and project management plan, and the resource availability. There are a number of tools that can also be utilized in most effectively estimating the required activity resources. Those tools inc lude expert judgment, a complete alternatives analysis, and the use of published estimating data, project management software, and the use of bottom-up estimati ng. The resulting outputs from this process include activity resource requiremen ts; activity attributes updates, requested changes, a resource breakdown structu re, and the development of a resource calendar. The successful utilization of ac tivity resource estimates will help assure that enough resources are acquired wi thout waste and excessive expenditure. Activity Duration Estimating: Activity re source estimating is a process in which the project team carefully compiles thor ough listing of the resources that will be needed in completing a project. There are six inputs that are to be used in the process of activity resource estimati ng. Those six inputs are the activity list, the activity attributes, the organiz ational process assets, the enterprise environmental factors, and project manage ment plan, and the resource availability. There are a number of tools that can a lso be utilized in most effectively estimating the required activity resources. Those tools include expert judgment, a complete alternatives analysis, the use o f published estimating data, project management software, and the use of bottomup estimating. The resulting outputs from this process include activity resource requirements; activity attributes updates, requested changes, a resource breakd own structure, and the development of a resource calendar. The successful utiliz ation of activity resource estimates will help assure that enough resources are acquired without waste and excessive expenditure. Basic elements of a project pl an: Many people (and a distressing number of project managers, too) think only o f a Gantt chart when they think of a project plan. You may recognise it as what you get from Microsoft Project. This is better called a project schedule, in tha t it shows when we expect the various sections of the project to happen. Wheneve r any project is planned it is absolutely vital to have a project plan and altho ugh initially it will take a little time to create, a good project plan will ult imately save you a good deal of time and probably money as well. It is often tem pting to just roll up your sleeves and start bringing the project into being. Bu t time taken to plan and create a project plan will actually ensure that you don 't rush into something and make foolish mistakes because you didn't plan for som ething. A good project plan has certain key elements that enable the manager and team to bring any project to conclusion on time and under budget. A Without the se key elements, the plan is incomplete and will eventually fail after proving i tself useless to completing the project. Bhupinder Singh Reg. No. 521063004 Page 5 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 Project planning is not an exact science, and pr oject plans vary greatly depending upon what is being developed and the project scope. Furthermore, project plan terms like scope statement, project charter, an d statement of work are not rigorously standardized and often have overlap or di ffering interpretations. One of the primary considerations should always be to h ave enough information, but no more. Demanding paperwork and reports for the sim ple sake of having things documented serves no useful purpose and can drive frus trated team members to view project management as nothing but busywork and burea ucracy. What is to be done: What is desired of the project and what it must deli ver to succeed? A high level scope document and requirements specs. at lower lev els; When it needs to be done by: The deadlines by which the objectives must be met, usually in a schedule of some kind; Who is to do it: The people, sometimes unkindly labelled resources, who are to deliver those objectives. This also usuall y implies costs since the application of costs implies the use of labour. Docume nted by a project budget; How it is to be achieved: The method of delivery, cove red by documents such as a technical specification, test plans and the like.

Question 4: Compare Critical Chain Project approach & critical chain approach. A nswer: Project schedule plan is the main plan included in any Project Management Plan. Project schedule is responsible for bringing project time, cost and quali ty under control. Project schedule links resources, tasks and time line together . Once Project Manager has list of resources, work breakdown structure (WBS) and effort estimates, he is good to go for planning project schedule. Schedule netw ork analysis helps Project Manager to prevent undesirable risks involved in the project. Critical Path Method (CPM) and Critical Chain Project Management (CCPM) are key elements of schedule network analysis. In the following sections we wil l explore these elements in details to understand their importance in keeping pr oject on schedule to get increase in ROI. Critical Path Method (CPM) / Critical Chain Approach: The Critical Path Method (CPM) is a schedule network analysis te chnique. CPM was developed by the DuPont Corporation in 1957.Critical path deter mines the shortest time to complete the project and it is the longest duration p ath through a network of tasks. Critical tasks (activities) are tasks (activitie s) on the critical path. To understand CPM further let's first understand Bhupinder Singh Reg. No. 521063004 Page 6 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 nature of the task. According to PMBOK every sch eduled task can be defined by the following four parameters: Early Start (ES): E arliest possible point in time on which a task can start. Early Finish (EF): Ear liest possible point in time on which a task can finish. Late Start (ES): Latest possible point in time on which a task can start. Late Finish (EF): Latest poss ible point in time on which a task can finish. Early Start and finish dates are calculated by means of Forward Pass and Late St art and Late Finish dates are calculated by means of Backward Pass. Many Tasks h ave some amount of buffer added to them referred as Slack Time or Float. Float t ime is amount of time a task can slip before it delays project schedule. There a re two common types of floats: Free Float: Amount of time a single task can be d elayed without delaying the early start of any successor task. Total Float: Amou nt of time a single task can be delayed without delaying project completion. Mat hematically Float is defined as: Float = LS - ES or LF - EF. Critical path has z ero or negative Total Float. A project can have several critical paths. CPM is helpful in: Project Planning and control. Time-cost trade-offs. Cost-bene fit analysis. Contingency planning. Reducing risk Limitations of CPM: CPM assumes low uncertainty in schedule dates. Does not cons ider resource dependencies. Less efficient use of buffer time. Less focus on non -critical tasks that can cause risk. Based on only deterministic task duration. Critical Path can change during execution. To overcome above limitations Critical Chain Project Management (CCPM) plays imp ortant role. Critical Chain Project Management (CCPM): According to PMBOK Critic al chain method is a schedule network analysis technique that modifies the proje ct schedule to account for limited resources. It mixes deterministic and probabi listic approaches to schedule network analysis. The critical chain concept was c oined by Eliyahu Goldratt. Following few sections briefly describe the concepts Critical Chain depends on and are useful to understand the example that will fol low shortly after that. CCPM takes advantage of the best practices of: PMBOK: Pl anning and control processes. Bhupinder Singh Reg. No. 521063004 Page 7 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 TOC (Theory of Constraints): Remove bottleneck t o resolve constraints. Lean: Eliminate waste. Six-Sigma: Reduce Variations. CCPM helps to overcome following phenomenon: Parkinson's Law: Work expands to fill the available time. Student Syndrome: People start to work in full fledge only when deadline is near. Murphy's Law: What can go wrong will go wrong. Bad MultiTasking: Bad multitasking can delay start of the successor tasks. CCPM is based on: Resource constrained situations. Optimum use of Buffer (amount of time added to any task to prevent slippage of schedule) Project Buffers (PB): Amount of buffer time at the end of the project. Feeding Buffers (FB): Amount o f buffer time at the end of a sequence of tasks. Resource Buffers (RB): It is an alert that is used to indicate that resource is needed to perform a task. This alert can be set few days before a resource is actually needed. Comparison of CP M and CCPM results: According to the results we found above, project duration by CPM traditional approach is 21 days and the project duration for the same amoun t of work by using CCPM is 16 Days. Using CCPM: Project Duration can be reduced by 25-40%. Resources can be utilized effectively. Project is fully focused on bo th critical and non-critical tasks Question 5: A new railway project is launched in India. Give an example of each project Influencing factors acronym in PESTLE. Answer: PESTLE Analysis in Busine ss Environment: In business PESTLE analysis role is very important. Originally d esigned as a business environmental scan, the PESTLE analysis is an analysis of the external macro environment in which a business operates. These are factors w hich are beyond the control or influence of a business, however are important to be aware of when doing product development, business or strategy planning. PEST LE meansP- Political, E- Economical, S- Social, T- Technological, L- Legal and E -Environmental The PESTLE subject should be a clear definition of the market bei ng addressed that is as under: Bhupinder Singh Reg. No. 521063004 Page 8 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling

Semester: 3 - Assignment Set: 1 A company looking at its market. A product lo ng at its market. A brand in relation to its market. A local business unit or fu nction in a business. A strategic option, such as entering a new market. A poten tial acquisition. A potential partnership. An investment opportunity Now we see in detail of PESTLE factors/Impact of a new Railway project being lau nched in India, i.e. opportunities in Rail Logistics Parks in India. It is the s tudy of the Indian context with a focus on Vapi, Gujarat (PESTLE Analysis of Vap i MMLP). Political Analysis: India has stepped up its plans in developing its in frastructure requirements and to promote its manufacturing and industrial sector s. The central government has launched ambitious plans to develop these requirem ents through public private partnerships. Considering the fact that the present government is the only other government to be re- elected after the government o f Jawaharlal Nehru, we can assume that there will be stability in the policies b rought forward by the present government. However, in a PPP, there is a level of control over the prices of services provided by the government. This might be p roblematic for a commercial developer in getting business to the park. For e.g. The Indian Railways which is under the administrative directive of the Ministry of Railways, heavily subsidise the passenger traffic on their services which the y compensate by overpricing the freight traffic. The cost of transportation of s teel (ton/km) is three times the one in China. As a result the movement of freig ht has increasingly shifted from rail to road. (Economic Intelligence Unit 2008) . There is also the issue of high pricing of the toll on expressways and nationa l highways for road freight traffic which has added to the costs and/or prevente d many truck owners from using these roads for quicker deliveries. Moreover, cha nges in regulatory policies at JNPT can affect the margins of logistics operator s. These policies and pricings can have significant impact on the development of the logistics park and affect growth in the long term. Socio - Economic Analysi s: The road freight industry is growing at 6-8% every year and is currently wort h about INR 1.42trillion. The country's 4% of roadways carries 60% of the freight traffic. (Cushman & Wakefield 2008) This has not only increased the logistics co sts, inefficiencies increase transport time, damage cargo and the increase the n eed to maintain large inventories. The impact to the Government is that there is an increase in the congestion on the roads which leads to more wear and tear an d damaged roads resulting in high maintenance costs to the government. (Pankaj & Nimit n.d.) Manufacturers needing storage facilities and other services need to deal with separate agencies catering to these facilities. This has aided to the increase in the costs of logistics. Gujarat has an unemployment rate of 13% (Go vernment of Gujarat 2008) and we know that the development of transport infrastr ucture is highly labour intensive and the project will help provide employment t o people in and around Vapi. (CII, KPMG 2007) Manpower spends amount to 4% of sa les against the industry average of 8 - 10%. India has a very large population o f young workforce, but there is skills shortage especially in trucking and wareh ousing segment which can be addressed by involving multinational players in the market who will bring their skills and expertise into the Indian business. Howev er, India's labour regulations are complex and very restrictive which will hamper growth in the manufacturing Bhupinder Singh Reg. No. 521063004 Page 9 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 sector on which the logistics parks are dependen t. (Arviset al. 2007) An MMLP can affect the livelihood of many depending on the trucking industry. However, this will take a long time as organised logistics i s forecasted at just 12% in the next 10 years. Skills development and training h as to be imparted to these sections to reemploy them in other industry. Technolo gical Analysis: The Indian logistics sector lacks technological advancement that will hamper the provision of value added services to the customers. Integrated IT systems are necessary to link ports, the customs, and various parks to track shipments. Currently, only a few thousand vehicles out of a total of several mil lions have tracking system. Multinational logistics operators can bring their te chnological expertise into the market and will in turn benefit the local operato rs in optimising efficiency. In privatizing the operations of container traffic through rails, there might be problems faced by new entrants to secure the rolli ng stock and specialised storage containers e.g. reefer containers because of li mited manufacturing capacity and technical know-how. This will result in firms t o import wagons at high cost. All these factors will increase the entry barriers for the private operators. (Pankaj & Nimit n.d.) Technology is constantly evolv ing and the sustainability of the social, economic and environmental factors is proportional to the technological advancement. Rail infrastructure is a long ter m investment, planned for a life of 30-40 years; therefore any changes in techno logy will be implemented only at a later stage. This might reduce the competitiv e advantage of rail freight. In a survey conducted among different companies ope rating in India, It was found that 63.04% of the respondents felt the most impor tant value added service is access to information about their consignment moveme nt. Legal Analysis: All operators and commercial developers of a MMLP are bound by the Indian legal framework mainly by two laws. They are:1. Multimodal transpo rtation of goods act: Multimodal transportation of goods in India is governed by an Act called the Multimodal Transportation of, Goods Act; 1993. The Act primar ily deals with the multimodal transportation of goods, from any place in India t o a place outside India, on the basis of a multimodal transport contract and for matters connected therewith or incidental thereto. All parties carrying out busi ness in multimodal transportation has to be registered under this act. The act d eals with regulations regarding the registration of the service, responsibilitie s if the consignor/ consignee and the liabilities involved in the service.2. For eign Trade Act: Since multimodal logistic park operators have to handle goods ex porting from and importing to India the operators are covered under Foreign Trad e (Development and Regulation) Act, 1992. The act deals with, apart from other i ssues, the licensing requirements of the foreign trade, Power of Central Governm ent to make Orders and Announce Export and Import Policy, Director General of fo reign trade and his functions, issue of Importer-Exporter Code Number and Licenc e, power of the central government to Search, Seizure, Penalty and Confiscation of items traded/ premises of the trader etc. Though there is an exhaustive legal framework protecting the interests of the operators and the customers, the lega l system is very slow and can be a barrier for an operator or developer in this field. In an interview, one of the trading directors of a large UK multinational revealed that the Indian judiciary, in his experience was a legal maze and it w ould be difficult to carry on with business as usual when the procedural framewo rk makes it difficult for a project to kick start in the first instant. Environm ental Analysis: Bhupinder Singh Reg. No. 521063004

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Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 The Dedicated Freight corridor has an enhanced l oading capacity in comparison to the existing facilities in the Indian railways. It has more width, height and an increased train length which will enable a loa d carrying capacity of 15,000 tons from the current capacity of 4000 tons. (Indi an Railways 2007) In an interview, one of the senior executives of UK's largest mu ltimodal logistics companies said that the market for CO2 reduction transportati on is limited, especially in the recession where everyone is trying to reduce co sts and are not willing to pay a premium for the service. However, he said that there is a market of retail giants like ASDA and TESCO who are interested in rai l based logistics transport as it is more carbon friendly. Conclusion: As the In dian markets are getting more competitive in the coming years, demand for multim odal logistics services including value added services is huge. Policy changes l ike the abolishment of the CST and opening of free trade and warehousing zones a re deciding factors for more companies to outsource their logistics services to third party contractors. The traffic projection is for the Vapi project and does not reflect the overall demand of logistics parks in India. One the largest con sumer for such service in the UK is the retail segment. Taking a cue from the UK market, we can assume that developing a logistics park in urban locations near to cities like Bangalore, Mumbai, and Chennai can capture greater traffic genera ted by both industrial as well as retail customers. To make this an even more at tractive business proposition, value added services like ICT, software support, packaging, testing and quality control, postponement in manufacturing, etc. can be provided in the logistics parks. Limitations: Though the data for the traffic flows and demand have been taken in good faith, there are limitations to the fi gures and it is necessary to consider different factors influencing the data col lection. The traffic forecast is calculated by taking into consideration the shi ft of traditional traffic flows (road transport) into rail. This can be achieved only when there is a cost advantage for the customer. The shift of traffic to t he MMLP is dependent on the number of competitors in the area. The projections a re forecast based on the assumption there will not be any other MMLP in this reg ion. Though this might be a possibility in case of a rail based logistics park a s the Indian Railways have a monopoly on the operation and development of this i nfrastructure, we have to take into consideration that other MMLP can be develop ed in the coming years depending on the demand. If a competitor can offer cost a dvantage with better service, this might directly affect the traffic flow to the Vapi MMLP. Question 6: Describe the most important components of a project planning tool An swer: One of the critical factors for project success is having a well-developed project plan. Here is a 10-step approach to creating the project plan, not only showing how it provides a roadmap for project managers to follow, but also expl oring why it is the project manager's premier communications and control tool th roughout the project. Bhupinder Singh Reg. No. 521063004 Page 11 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 Step 1: Explain the project plan to key stakehol ders and discuss its key components. One of the most misunderstood terms in proj ect management, the project plan is a set of living documents that can be expect ed to change over the life of the project. Like a roadmap, it provides the direc tion for the project. And like the traveller, the project manager needs to set t he course for the project, which in project management terms means creating the project plan. Just as a driver may encounter road construction or new routes to the final destination, the project manager may need to correct the project cours e as well. A common misconception is that the plan equates to the project timeli ne, which is only one of the many components of the plan. The project plan is th e major work product from the entire planning process, so it contains all the pl anning documents for the project. Typically many of the project's key stakeholde rs, that is those affected by both the project and the project's end result, do not fully understand the nature of the project plan. Since one of the most impor tant and difficult aspects of project management is getting commitment and buyin g, the first step is to explain the planning process and the project plan to all key stakeholders. It is essential for them to understand the importance of this set of documents and to be familiar with its content, since they will be asked to review and approve the documents that pertain to them. Components of the Proj ect Plan Include: Baselines: Baselines are sometimes called performance measures , because the performance of the entire project is measured against them. They a re the project's three approved starting points and include the scope, schedule, and cost baselines. These provide the 'stakes in the ground.' That is, they are used to determine whether or not the project is on track, during the execution of the project. Baseline management plans: These plans include documentation on how variances to the baselines will be handled throughout the project. Each proj ect baseline will need to be reviewed and managed. A result of this process may include the need to do additional planning, with the possibility that the baseli ne(s) will change. Project management plans document what the project team will do when variances to the baselines occur, including what process will be followe d, who will be notified, how the changes will be funded, etc. Other work product s from the planning process: These include a risk management plan, a quality pla n, a procurement plan, a staffing plan, and a communications plan. Step 2: Roles and responsibilities: Not all key stakeholders will review all documents, so it is necessary to determine who on the project needs to approve which parts of th e plan. Some of the key players are: Project sponsor, who owns and funds the entire project,. Sponsors need to review and approve all aspects of the plan. Bhupinder Singh Reg. No. 521063004 Page 12 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 Designated business experts, who will define their requirements for the end prod uct. They need to help develop the scope baseline and approve the documents relating to scope. They will be quite interested in the timeline as well. Project manager, who creates, executes, and controls the project plan. Since pro ject managers build the plan, they do not need to approve it. Project team, who build the end product. The team needs to participate in the development of many aspec ts of the plan, such as identifying risks, quality, and design issues, but the t eam does not usually approve it. End users, who use the end product. They too, need to participate in the develop ment of the plan, and review the plan, but rarely do they actually need to sign off.

Others, such as auditors, quality and risk analysts, procurement specialists, an d so on may also participate on the project. They may need to approve the parts that per tain to them, such as the Quality or Procurement plan. Step 3: Hold a kick-off m eeting. The kick-off meeting is an effective way to bring stakeholders together to discuss the project. It is an effective way to initiate the planning process. It can be used to start building trust among the team members and ensure that e veryone's ideas are taken into account. Kick-off meetings also demonstrate commi tment from the sponsor for the project. Here are some of the topics that might b e included in a kick-off meeting: Business vision and strategy (from sponsor) oject vision (from sponsor) Roles and responsibilities Team building Team commit ments How team makes decisions Ground rules How large the group should be and wh ether sub-groups are necessary Step 4: Develop a Scope Statement. The Scope Statement is arguably the most impo rtant document in the project plan. It's the foundation for the rest of the projec t. It describes the project and is used to get common agreement among the stakeh olders about the scope. The Scope Statement clearly describes what the outcome o f the project will be. It is the basis for getting the buy-in and agreement from the sponsor and other stakeholders and decreases the chances of miscommunicatio n. This document will most likely grow and change with the life of the project. The Scope Statement should include: Business need and business problem Project o bjectives, stating what will occur within the project to solve the business prob lem Benefits of completing the project, as well as the project justification Bhupinder Singh Reg. No. 521063004 Page 13 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 Project scope, stated as which deliverables will be included and excluded from the project. Key milestones, the approach, and ot her components as dictated by the size and nature of the project. It can be treated like a contract between the project manager and sponsor, one t hat can only be changed with sponsor approval. Step 5: Develop scope baseline. O nce the deliverables are confirmed in the Scope Statement, they need to be devel oped into a work breakdown structure (WBS), which is a decomposition of all the deliverables in the project. This deliverables forms the scope baseline and has these elements: Identifies all the deliverables produced on the project, and the refore, identifies all the work to be done. Takes large deliverables and breaks them into a hierarchy of smaller deliverables. That is, each deliverable starts at a high level and is broken into subsequently lower and lower levels of detail . The lowest level is called a "work package" and can be numbered to correspond to activities and tasks.

The WBS is often thought of as a task breakdown, but activities and tasks are a separate breakdown, identified in the next step. Step 6: Develop the schedule an d cost baselines. Here are the steps involved in developing the schedule and cos t baselines. Identify activities and tasks needed to produce each of the work p ckages, creating a WBS of tasks. Identify resources for each task, if known. Est imate how long it will take to complete each task. Estimate cost of each task, u sing an average hourly rate for each resource. Consider resource constraints, or how much time each resource can realistically devoted to this project. Determin e which tasks are dependent on other tasks, and develop critical path. Develop s chedule, which is a calendarization of all the tasks and estimates. It shows by chosen time period (week, month, quarter, or year) which resource is doing which tasks, how much time they are expected to spend on each task, and when each tas k is scheduled to begin and end. Develop the cost baseline, which is a time-phas ed budget, or cost by time period. This process is not a one-time effort. Throug hout the project you will most likely be adding to repeating some or all of thes e steps.

Step 7: Bhupinder Singh Reg. No. 521063004 Page 14 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 Create baseline management plans. Once the scope , schedule, and cost baselines have been established, you can create the steps t he team will take to manage variances to these plans. All these management plans usually include review and approval process for modifying the baselines. Differ ent approval levels are usually needed for different types of changes. In additi on, not all new requests will result in changes to the scope, schedule, or budge t, but a process is needed to study all new requests to determine their impact t o the project. Step 8: Develop the staffing plan. The staffing plan is a chart t hat shows the time periods, usually month, quarter, year, that each resource wil l come onto and leave the project. It is similar to other project management cha rts, like a Gantt chart, but does not show tasks, estimates, begin and end dates , or the critical path. It shows only the time period and resource and the lengt h of time that resource is expected to remain on the project. Step 9: Analyse pr oject quality and risks. Project Quality is consists of ensuring that the end pr oduct not only meets the customer specifications, but is one that the sponsor an d key business experts actually want to use. The emphasis on project quality is on preventing errors, rather than inspecting the product at the end of the proje ct and then eliminating errors. Project quality also recognizes that quality is a management responsibility and needs to be performed throughout the project. Cr eating the Quality Plan involves setting the standards, acceptance criteria, and metrics that will be used throughout the project. The plan, then, becomes the f oundation for all the quality reviews and an inspection performed during the pro ject, and is thus used throughout project execution. Project Risk is an event th at may or may not happen, but could have a significant effect on the outcome of project, if it were to occur. For example, there may be a 50% chance of a signif icant change in sponsorship in the next few months. Analysing risks includes mak ing a determination of both the probability that a specific event may occur and if it does, assessing its impact. The quantification of both the probability and impact will lead to determining which the highest risk that needs attention is. Risk management includes not just assessing the risk, but developing risk manag ement plans to understand and communicate how the team will respond to the highrisk events. Step 10: Communicate! One important aspect of the project plan is t he Communications Plan. This document states such things as: Who on the project wants which reports, how often, in what format, and using what media? How issues will be escalated and when. Where project information will be stored and who ca n access it. For complex projects, a formal communications matrix is a tool that can help det ermine some of the above criteria. It helps document the project team's agreed-o n method for communicating various aspects of the project, such as routine statu s, problem resolution, decisions, etc. Bhupinder Singh Reg. No. 521063004 Page 15 of 16

Sikkim Manipal University - MBA PM0011 - Project Planning and Scheduling Semester: 3 - Assignment Set: 1 Once the project plan is complete, it is importa nt not just to communicate the importance of the project plan to the sponsor, bu t also to communicate its contents once it's created. This communication should include such things as: Review and approval of the project plan. Process for cha nging the contents of the plan. Next steps-executing and controlling the roles/r esponsibilities in the upcoming phases. project plan and key stakeholder Bhupinder Singh Reg. No. 521063004 Page 16 of 16